Fast Facts | PHEVs Outsell Diesel Cars in Europe
⚡ Market Shift: PHEVs reached 9.4 percent market share in Europe
📉 Diesel Decline: Diesel vehicles dropped to just 8 percent of new sales
📅 Peak Diesel: Diesel once held 52 percent of Europe’s new car market in 2015
🧪 Aftermath: Dieselgate accelerated stricter emissions rules and consumer distrust
🌍 Hybrid Momentum: Regular hybrids now hold 34.7 percent of EU market share
🔌 EV Growth: Battery-electric vehicles reached 16.4 percent of EU sales in 2025
🚗 US Trend: EVs already outsell diesels in the USA, with PHEVs growing rapidly
What is Causing the decline of Diesel Cars?
Environmental and health concerns
- Air pollution: Diesel exhaust contains harmful pollutants like nitrogen oxides (NOxNOx) and particulate matter, which are linked to respiratory illnesses and cardiovascular diseases.
- Health impacts: The World Health Organization has classified diesel exhaust as a Group 1 carcinogen, meaning it is a probable cause of lung cancer.
- Regulatory response: In response to these health impacts, cities and governments have implemented stricter regulations, and some have even proposed bans on diesel vehicles.
The "Dieselgate" scandal and its aftermath
- Cheating emissions tests: The 2015 Volkswagen "Dieselgate" scandal revealed that several automakers had intentionally cheated on emissions tests, leading to higher-than-advertised emissions.
- Public and industry damage: This scandal severely damaged the reputation of diesel as a clean and efficient fuel, and sales plummeted as consumer trust eroded.
Technical and reliability issues with diesel engines
- Complex emission control systems: Newer, stricter emissions standards have required automakers to implement increasingly complex systems like Diesel Particulate Filters (DPF) which add to the cost and complexity of the vehicles.
- Reliability problems: The complexity of these systems has led to new reliability problems, with frequent failures of components like DPFs, AdBlue systems, and other related parts.
- Higher repair costs: The intricate nature of these modern diesel engines makes them more expensive to repair when issues arise, further discouraging consumers.
European drivers purchased more plug-in hybrid vehicles than diesel cars in 2025. That’s amazing, because diesel vehicles have been a big hit in Europe for many years. In fact, diesels reached their peak in 2015, accounting for 52 percent on new car sales.
Government policies in the UK and Europe encouraged diesel use to meet environmental goals. The rise of diesel popularity was due to a number of factors including tax incentives, lower fuel costs, and higher fuel efficiency when compared to gasoline-powered vehicles.
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Then, in 2015, the Volkswagen emissions scandal known as Dieselgate happened. The automotive giant was caught using illegal “defeat devices” to cheat emissions tests for its diesel cars. Apparently, software in VW diesel cars detected when a car was being tested in a lab, activating emission controls, but would disable them during real-world driving, causing the vehicle to emit higher levels of pollutants.
The United States EPA discovered the “defeat devices” in Volkswagen diesel vehicles being sold in America. Approximately 11 million vehicles worldwide were affected, including models from Audi and Porsche.
Volkswagen faced enormous legal, financial, and reputational consequences including billions in fines and settlements. The scandal led to a broader push for more realistic emissions testing methods for the entire automotive industry.
After the impact of Dieselgate, the market for diesel vehicles has continued to shrink, due in part by the advance of hybrid, plug-in hybrid, and electric vehicles that offered better fuel economy and far less pollution. Another reason for shrinking diesel ownership is due to tighter emissions regulations overseas. Now, ten years later, plug-in hybrids outsold diesel vehicles in Europe for the first time.
According to the European Automobile Manufacturers’ Association (ACEA), diesel vehicles were outsold by PHEVs in 2025. The ACEA tells us that only 8 percent of new cars sales in the European Union (including Switzerland, Norway, Iceland, and the United Kingdom) are diesel powered.
Hybrids and plug-in hybrids are seen as practical and efficient alternatives for diesel vehicles, especially for drivers who are not yet ready for a full EV or who lack reliable charging infrastructure. They offer the fuel efficiency benefits of an electric motor, making them a convenient option.
PHEVs now have 9.4 percent of the EU market share, 32.9 percent up over the same period last year. Diesel car sales dropped 24.1 percent year over year. But that’s not all. Regular hybrid vehicles outsold diesels in Europe in 2021 and currently have 34.7 percent of the market. What about all-electric cars? This year they took 16.4 percent of the EU market share and have outsold diesels since 2023.
EVs and Hybrids Outsell Diesels in America
Here in the United States, electric vehicle sales have set new records, with millions sold in 2023 and 2024 thanks in part to falling EV prices and growing consumer demand. EVs consistently outsell diesel cars in the USA, with market share data showing a clear shift away from diesel and toward EVs and hybrids.
PHEVs do not currently outsell diesels in the USA; however, the trend is showing significant growth for PHEVs while diesel sales are declining. Add to this the growing consumer demand in America for a transitionary technology between gasoline and full electric vehicles, and PHEVs will likely outsell diesels next year.
Key Market Trends Shaping Europe’s Electrified Future
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